Firms are motivated to improve cash flow EXCEPT by:
Having the cash necessary to perform daily operations.
Increasing cash balances in non-interest bearing checking accounts.
Increasing short-term investment of cash surpluses.
Minimizing short-term borrowings in the event of cash deficits.
True or False _____Firms are motivated to slow collections float and expedite disbursement float.
True or False_____Opportunity cost includes maintaining idle balances dispersed across many accounts at multiple banks which ties up cash.
A firm that has small daily cashflows, minimal computer facilities, and untrained treasury personnel, would tend to use a disbursement system that is:
Manual and paper-based.
Automated and ACH-based.
Electronic with a focus on wires for funding.